Angel Investor Directory

Angel investors are invaluable resources who can help connect your business with future rounds of financing, build your executive team, choose advisory board members and meet potential business partners. Their most important role is to infuse your start-up with cash. But unlike other types of financing — such as bank loans — angel investors can do more than keep your company’s coffers full as they often take a hands-on advisory or consulting role in the company, especially when it’s just starting out.

Finding the right angel investor can be a critical part of getting your start-up off the ground. Angel investors can be found in a variety of ways. In some communities, there exists a separate angel network (such as the Band of Angels in Silicon Valley). The best way to find angel investors is to network among people likely to know them--business leaders, wealthy individuals, and such professionals as lawyers, accountants, and bankers. In university towns, another tactic is to make contacts among business-school academics.

Angel-investor networks are a good place to start looking for funding. These national and local groups of angels meet - formally or informally - to discuss deals and learn about the best new business opportunities. Each network works in a slightly different way. Many charge a fee to entrepreneurs who present plans at their meetings. Some even charge a fee to apply for consideration. You can have access to angel network directories that are sold online through many sites or you can also trace their network using the search engines.

In order to trace the potential angel investors, the following points should be taken into consideration:
  • Approach only those angels who are less than two degrees of separation from you. You must ask everybody you know, not whether they want to invest, but whether they know anybody who might.
  • Restrict your search to your geographic area to find pockets of people eager to invest. It is, however, a good idea to approach people you don't know but they must have a unique understanding of your product.
  • Consider Harold Lacy's "six degrees of separation" method. This method suggests your angel investor might be somebody you know, recommended by somebody you know, or a local investment club, business person, perhaps even a local development agency.



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